If Demand for a Firm's Products Suddenly Slows Down So

question 138

Multiple Choice

If demand for a firm's products suddenly slows down so that inventory increases while sales decrease, how will the firm's needs for net working capital react?

• A) Net working capital would increase.
• B) Net working capital would decrease.
• C) There would be no change in net working capital.
• D) Net working capital would first decrease, then increase slowly over time.

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Definitions:

Conditioned Stimulus

An initially neutral signal that, once paired with an unconditioned stimulus, ultimately leads to eliciting a conditioned response.

Discrimination

Unjust or prejudicial treatment of different categories of people, especially on the grounds of race, age, or sex.

Immune Response

The bodily system's defense mechanism against pathogens, including the processes of identifying and eliminating harmful agents.

Classical Conditioning

A training process involving the pairing of a naturally occurring stimulus with an environmental stimulus.